On December 11, 2025, the Federal Reserve voted 9-3 to lower the federal funds rate by 25 basis points to 3.50–3.75%, citing cooling labor markets and persistent inflation risks. Fed Chair Jerome Powell emphasized a data-dependent approach, signaling a cautious stance for 2026. The decision disappointed some investors expecting a more dovish tone, contributing to short-term pressure on risk assets.
The Fed’s measured cut reinforces a “higher-for-longer” rate environment in the near term, which can weigh on risk-on assets like Bitcoin. However, sustained institutional interest and ETF inflows continue to provide underlying support.
Monitor key levels:
